Leadership MD and above

I am a relatively new Director and was recently talking to someone quite high up in STS who has been here more than a decade. He said that the good leaders use Schwab as a stepping stone to get their next big external gig. His view was that they quickly realize its hard to get anything done and the folks entrenched at the top are low on real tech competency and hence have no incentive to allow new ideas to shine. His view was that the best days of Schwab are over and the decline has started. He said its equally bad in business and has got worse. He said no hope until Dennis and Tim move on but the next level is also very bad. Does Rick see this and why does let the rot perpetuate?

I was dejected after that chat, wonder for those in STS Director and above what your thoughts are?

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10 replies (most recent on top)

@168 you seriously think our business is efficient and solid? It’s the tech that runs the show bub.

@13j so which business areas are the worst?

Retail is our bread n butter to get clients in the door. Dont have to do much but iterate.

Advisor services dont have to do much infrastructure provider for rias and gain custody business

Wealth offers is a joke but they keep making money with legacy schwab clients aged clients

Asset mgmt low cost fund factory dont need to do much other

And bank makes money with transactional cash

My view is that business is solid. The issue is with tech leadership but enabled by biz leaders who dont understand tech

My views are that STS has too broad a scope and no authority as the business lines aren’t strategic with tech. Business units waste money on tech and there is no effective architecture and governance. So… budgets needed increase.
Leadership in STS is solid with what they have to deal with, which is a dysfunctional business… so yes, schwab will eventually be bought

@j3 I think so to. Robinhood and other more lean companies are running circles around Schwab. Look at the 530A accounts. Robinhood was chosen as the custodian. No wonder that the Schwab goal is to reduce the workforce by 50% in 5 years. It is the only path to survival.

@j3 My thinking as well. Their basic business model is flawed and cost them big time in 2023 that they still haven’t recovered from. No other financial firm took the hit they did ($19.5B according to Barrons) although Walt tried to paper over it.

@j3 Not a chance. The numbers don't support acquisition. And they no longer support Chuck's going private dream.

I'll give it 5 years. Before then Schwab will be acquired by a major bank for the customer base. Two years after that, half of the Schwab employees have been laid off.

@OP same can be said about the FC role…..

They dont want strong leaders at next level as it risks their survival. None of them can get same C suite roles if they leave Schwab.

Sorry. But yeah. Except for the stepping stone part the coaching is accurate.

Thread regarding Charles Schwab Corp. layoffs

Leadership MD and above

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